EURUSD analysis 06.04.2020

The single currency fluctuated the euro in a narrow range tilted to the upside during the Asian session to witness its bounce to the second session from the lowest since March 25 against the US dollar on the threshold of developments and economic data expected today by the economies of the euro area and amid the scarcity of economic data at the beginning of this week By the American economy the largest economy in the world.

At exactly 05:42 am GMT, the euro pair rose against the US dollar by 0.15% to 1.0826 levels compared to the opening levels at 1.0810 after the pair achieved its highest level during the trading session at 1.0846, while achieving the lowest at 1.0765, knowing that the pair The session opened with an upward price gap after it closed last week's trading at 1.0801 levels.

Markets are looking by Germany, the euro zone's largest economy, for the release of factory demand reading, which may show a 2.7% decline versus a 5.5% rise in January, while the seasonally adjusted annual reading may reflect a shrinking decline to 0.2% versus 1.4%, before To see the eurozone economies as a whole released the Sentix CPI reading which showed the contraction widened to 30.5 versus 17.1 in March.

According to the latest developments related to the global health crisis and the outbreak of the Corona virus, deaths in New York State decreased for the first time despite US President Donald Trump's recent warning that the coming period was “painful” for his country, after he recently announced the extension of the quarantine in America until the end of This month to reduce the spread of coronavirus.

Italy also recorded the lowest number of deaths in more than two weeks, France recorded the lowest number in five days and the death toll has decreased in Spain for three consecutive days, while British Prime Minister Boris Johnson was hospitalized for tests after he was infected with the virus for 10 days, according to the latest figures Issued by the organization, the number of cases infected with the virus increased to about 1,137 thousand, and 62,955 people were killed in 208 countries.

Technical analysis

The EURUSD pair shows some slight bullish bias after finding strong support at 1.0775, to approach the previously broken support test which turns into a significant resistance at 1.0840, accompanied by the stochastic loss of positive momentum gradually, while the moving average constitutes 50 negative pressure against the price.

Consequently, we believe that opportunities exist to rebound downwards and resume the main bearish trend, noting that our next targets start at 1.0700 and extend to 1.0640, while achieving them requires stability below 1.0840.

The expected trading range for today is between 1.0700 support and 1.0900 resistance

Expected trend for today: bearish